Library | ESG issues
Greenwashing
Greenwashing refers to the misleading practice of overstating or falsely presenting an organisation’s environmental or sustainability efforts. It can involve deceptive marketing, incomplete disclosures, or exaggerated claims about products and corporate practices. In finance, greenwashing undermines ESG credibility, leading to reputational damage, legal risks, and loss of investor trust. Strengthening transparency and accountability is essential to ensure capital supports truly sustainable initiatives and maintains market integrity.
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Investing for outcomes: Why impact is relevant beyond impact investing
This report explores the importance of measuring the impact of investing activities, particularly in the increasingly popular field of impact investing. It discusses the use of data to assess a company's social and environmental footprint, the role of taxonomies in impact investing, and the rise of impact awareness.
Greenwashing: A governance perspective
This report provides an overview of greenwashing practices and their impact. The report expounds on the various forms of greenwashing and highlights the need for governance professionals to ensure accurate claims by companies. It also touches on Australia's legal and regulatory environment as regards greenwashing and contains helpful advice on how to manage it.
Circular to management companies of SFC-authorised unit trusts and mutual funds ESG funds
The Securities and Futures Commission (SFC) released a new circular prescribing disclosure requirements and periodic assessments for SFC-authorised unit trusts and mutual funds that focus on environmental, social, and governance (ESG) factors. Fund managers must include comprehensive disclosures in annual reports and take regular steps to ensure ESG investments align with a fund's intention.
Integrity matters: Net zero commitments by businesses, financial institutions, cities and regions
As the global community faces a climate crisis, the report recommends setting standards and criteria for achieving net zero emissions, addressing concerns about greenwashing, and calling for a just transition for developing countries. The report advocates for a collaborative 'ambition loop' to accelerate global efforts toward a sustainable future.
Aggregate confusion: the divergence of ESG ratings
The research investigates the disagreement in Environmental, Social and Governance (ESG) ratings between rating providers. Three factors are identified: measurement divergence, scope divergence and weight divergence. The paper argues for a standardisation of ESG indicators and measurement procedures to reduce the discrepancy in ESG ratings.
Guidance on Sustainability-Linked Loan Principles
The Sustainability-Linked Loan Principles (SLLP) were originally published in 2019 and provide a framework to what is recognised as an increasingly important area of finance. A sustainability-linked loan is one that incentivises borrowers to improve sustainability performance targets. This guidance note should be read alongside the SLLP.
Greenwashing risks in asset management: Staying one step ahead
The practice of greenwashing is a key regulatory concern in the UK, EU and globally. Greenwashing involves making misleading statements about sustainable products. This report examines how greenwashing occurs and the regulatory initiatives that have emerged to combat this. The report provides five steps firms can take to prevent greenwashing.
Global ESG disclosure standards for investment products
This report presents the “Global ESG disclosure standards for investment products” developed by the CFA Institute to facilitate fair representation and full disclosure by investment managers in relation to how environmental, social and governance (“ESG”) issues are considered in an investment product’s objectives, investment process or stewardship activities.
Is the gas industry facing its Volkswagen moment? Gas is more emissions intensive than the gas industry’s marketing arm suggests
Conventional or natural gas is an important short-term fuel for building a reliable renewable energy system in Australia. However, the need for more gas is overestimated by the gas industry. Stakeholders have been misled about the carbon footprint of gas production, transportation and its impact on climate change.
Point of no returns: A ranking of 75 of the world’s largest asset managers’ approaches to responsible investment
In this first of a series of reports released by ShareAction, 75 of the worlds largest and most influential asset management companies from across Europe, the United States, Africa and the Asia Pacific are ranked according to an analysis of their performance on stewardship, transparency and governance.
Time for AIA to prove their climate credentials
IEEFA report highlights AIA's discrepancies on its climate change commitments as visible from the carbon footprint of its portfolio. AIA, one of the world's largest financial firms and one of Asia's largest insurers, is estimated to hold up to US$6 billion in coal and coal-fired investments despite commitment to three global climate accords.
TCFD good practice handbook
This Task Force on Climate-related Financial Disclosures (TCFD) handbook provides examples of good practice climate-related financial disclosures across the four core TCFD elements of governance, strategy, risk management, metrics and targets from corporates across the G20.
Over 100 global financial institutions are exiting coal, with more to come
This report published by IEEFA highlights the fact that over a hundred globally significant financial institutions are divesting from coal projects. It mentions that these major financial institutions, including commercial banks, insurance companies, pension funds, asset management companies, and development finance institutions, are building up the momentum against coal projects.
ESG in fixed income
This guide created by BMO Global Asset Management shows how and why they incorporate ESG factors and stewardship activities into their corporate fixed income investments and engagement approach. The guide also looks at how the growing sustainable bonds market is enabling fixed income investors to align investments with sustainability goals.
